BillerudKorsnäs has acquired Bergvik Skog Öst AB, consisting of approximately 350,000 hectares of forest land in Sweden, as part of a strategic effort to secure a long-term wood supply.

Information on the Target

BillerudKorsnäs has completed an agreement with all shareholders of Bergvik Skog AB concerning the division of its forest assets. This agreement allows BillerudKorsnäs to acquire Bergvik Skog Öst AB, which encompasses approximately 350,000 hectares of forest land located in Sweden. In conjunction with this acquisition, the company will divest 5% of its shares in Bergvik Skog Väst AB to Stora Enso.

The transaction has reached its conclusion as of May 31, with all conditions satisfied. The purchase price for Bergvik Skog Öst AB totals approximately SEK 6.4 billion, calculated on a debt-free basis, resulting in an effective cost of around SEK 18,000 per hectare of forest land. After accounting for the acquisition and subsequent share transfer, the net cash effect amounts to SEK 5.4 billion, which is fully financed through bank loans.

Industry Overview in Sweden

The forestry sector in Sweden is a vital component of the country's economy, characterized by vast expanses of forested land, accounting for nearly 69% of the country's total area. The industry plays a crucial role in su